When it comes to 2020 and energy prices, the world’s energy market will face many known and unknown variables. How and what types of events that will ultimately play out are unknown but, according to industry and government experts, there are some variables that are projected to lead to lower global prices overall.
Based on a Dec. 10 short-term energy outlook publication from the U.S. Energy Information Administration (EIA), there will be a mix of pushes and pulls on the price of crude oil and associated refining products. Market prices in 2020 for Brent crude oil is expected to average around $61, compared to 2019’s $64 average price per barrel. Looking at West Texas Intermediate (WTI) quotes, the EIA sees this type of crude settling, on average, at about $5.50 per barrel lower than Brent crude oil in 2020. The EIA bases its lowered price forecast on greater supplies of oil globally, especially in the first half of 2020.
The agency’s data shows that in September 2019, America exported more than 90,000 net barrels per day of products from and crude oil itself. This is coupled with domestic export projections of 570,000 net barrels per day in 2020, in contrast to average net imports of 490,000 barrels per day in 2019.
According to EIA’s projections, U.S. crude oil production will grow by 900,000 barrels per day in 2020, compared to 2019’s production, resulting in 13.2 million barrels of daily production in 2020. This growth is compared to 2019’s production gains of 1.3 million barrels per day, and 2018’s 1.6 million barrel per day growth. The decrease in production, attributed by the EIA, is due to increased rig efficiency and well level productivity, despite the number of rigs dropping.
The EIA believes that OPEC and its “+” oil producing states will go beyond announced oil production cuts on Dec. 6, further cutting production through March 2020. The original cuts of 1.2 million barrels per day, announced in December 2018, have been modified to reducing production to 1.7 million barrels per day. The EIA expects the major global producers to keep production curtailed through all of 2020, due to increasing global oil inventories.
Fuel Standard’s Impact on Oil Prices
Through implementation of the International Maritime Organization (IMO), Jan. 1, 2020, is ushering in new standards for allowable levels of sulfur in bunker fuel. This fuel will be required to contain no more than 0.5 percent sulfur content, compared to current allowable levels of 3.5 percent of the bunker oil’s weight. In reaction to the new standards, the EIA expects American refineries to increase operations by 3 percent in 2020 versus 2019’s production. It’s expected to increase wholesale margins in 2020 to 57 cents per gallon, on average, with it spiking to 61 cents per gallon. This is compared to 45 cents a gallon in 2019.
The Federal Reserve and Oil Prices
According to the Dec. 11, 2019, FOMC statement from The Federal Reserve, there was no modification to the federal funds rate. They based their decision on a yearly measure for inflation, excluding food and energy, along with signs of continued economic expansion, including healthy job creation and continued high rates of employment. However, the Fed indicated that if its goals of fostering a growing economy, maintaining a healthy job market and a 2 percent inflation target fall short, it will take appropriate action to keep supporting economic expansion. Depending on the Fed’s action to lower, increase or maintain its rates, the price of oil would feel the impacts.
While there’s no telling how fiscal policy and geopolitical events will play out in 2020, it looks like the price of oil will head south.
32 Comments
Swmqmv · October 18, 2024 at 5:45 am
buy losartan 50mg online – keflex 500mg without prescription keflex 250mg pill
Qsitnt · October 19, 2024 at 2:12 pm
buy cleocin for sale – cleocin 300mg cost brand indocin 50mg
Zwnlji · October 23, 2024 at 3:59 pm
oral provigil – promethazine online buy purchase melatonin
Bvwlet · October 24, 2024 at 1:13 pm
purchase eurax without prescription – order mupirocin generic order aczone sale
Ucxcnw · October 29, 2024 at 5:07 am
buy bupropion pills – order xenical 60mg online shuddha guggulu without prescription
Kchbuk · October 29, 2024 at 5:09 pm
purchase xeloda – buy cheap generic ponstel danocrine 100 mg cheap
DavidLef · October 31, 2024 at 4:47 pm
Бренд Тиссо — известный Швейцарский производитель часовых часов, который известен своим надежным качеством и стильным дизайном. Уже более полутора веков компания выпускает современные часы, что завоевали доверие по всему миру.
Выбрать часы Тиссот в каталоге
Llxuxr · November 3, 2024 at 8:36 am
progesterone 200mg pills – buy clomiphene 100mg generic order clomiphene pill
Umaxkp · November 3, 2024 at 11:16 pm
cheap alendronate – pilex generic provera 10mg uk
Uutpzs · November 9, 2024 at 10:14 am
aygestin cheap – buy yasmin online cheap cheap yasmin pill
Shhwnm · November 11, 2024 at 4:38 am
estrace oral – cost arimidex 1 mg order arimidex 1mg without prescription
Islyfn · November 15, 2024 at 2:59 pm
cabergoline 0.5mg drug – order alesse pills order alesse online cheap
Zdhrcf · November 18, 2024 at 1:20 am
гѓ—гѓ¬гѓ‰гѓ‹гѓігЃ®иіје…Ґ – г‚ўгѓўг‚г‚·гѓ« еЂ‹дєєијёе…Ґ гЃЉгЃ™гЃ™г‚Ѓ г‚ёг‚№гѓгѓћгѓѓг‚Ї её‚иІ© гЃЉгЃ™гЃ™г‚Ѓ
Rmxvnc · November 21, 2024 at 7:20 pm
г‚·гѓ«гѓ‡гѓЉгѓ•г‚Јгѓ« еЂ‹дєєијёе…Ґ гЃЉгЃ™гЃ™г‚Ѓ – г‚·гѓ«гѓ‡гѓЉгѓ•г‚Јгѓ«гЃЇи–¬е±ЂгЃ§иІ·гЃ€г‚‹пјџ г‚·г‚ўгѓЄг‚№ гЃ©гЃ“гЃ§иІ·гЃ€г‚‹
Xmxgcf · November 23, 2024 at 5:19 pm
гѓ—гѓ¬гѓ‰гѓ‹гѓі гЃЉгЃ™гЃ™г‚Ѓ – гѓ—гѓ¬гѓ‰гѓ‹гѓійЂљиІ© 安全 г‚ўг‚ュテインの飲み方と効果
Iwnbqu · December 2, 2024 at 12:43 pm
eriacta background – apcalis somewhat forzest information
Gfrlac · December 4, 2024 at 6:21 am
valif online brisk – buy generic secnidazole sinemet order
Qbkpiw · December 6, 2024 at 8:46 pm
valif pills page – secnidazole where to buy buy sinemet 10mg pill
Pewzlj · December 8, 2024 at 9:04 am
crixivan generic – buy crixivan generic order emulgel sale
Gymswj · December 14, 2024 at 8:59 am
provigil 200mg price – purchase duricef for sale order epivir for sale
Awppcp · December 14, 2024 at 10:55 am
buy promethazine 25mg sale – lincocin 500 mg uk lincomycin 500 mg generic
Rrdhfg · December 19, 2024 at 3:18 pm
ivermectin 12mg tablets – buy atacand without prescription tegretol 200mg cost
Cxudvz · December 28, 2024 at 12:30 am
generic deltasone 5mg – deltasone 5mg pill buy capoten paypal
Emznqy · January 1, 2025 at 2:30 am
prednisone 20mg pills – buy starlix 120 mg generic generic capoten 25 mg
RolandNeose · January 11, 2025 at 9:12 pm
На этом сайте вы найдёте подробную информацию о способах лечения депрессии у людей преклонного возраста. Также здесь представлены методах профилактики, современных подходах и советах экспертов.
http://fridayfragments.com/dan-wolgemuth/i-am-laguardia-airport/
BennyDah · January 15, 2025 at 8:57 pm
На этом сайте вы найдёте полезную информацию о терапии депрессии у людей преклонного возраста. Вы также узнаете здесь о методах профилактики, современных подходах и рекомендациях специалистов.
http://alexandraconstruction.com/idrow-6-c/
Zgaely · January 19, 2025 at 6:40 am
purchase accutane for sale – order dexamethasone for sale linezolid medication
Ykqbtq · January 19, 2025 at 11:00 pm
purchase amoxil online – cheap amoxicillin tablets combivent tablet
Dannyfrugs · January 24, 2025 at 6:40 pm
На этом ресурсе вы сможете найти актуальное зеркало 1xBet.
Здесь предоставляем только свежие ссылки на сайт.
Если основной сайт заблокирован, примените зеркалом.
Оставайтесь всегда на связи без перебоев.
https://usa.life/read-blog/110637
DennisVieby · January 27, 2025 at 9:14 pm
Программа видеонаблюдения – это актуальное решение для защиты имущества, сочетающий инновации и простоту управления.
На сайте вы найдете подробное руководство по настройке и установке систем видеонаблюдения, включая онлайн-хранилища, их сильные и слабые стороны.
Облачное видеонаблюдение
Рассматриваются комбинированные системы, объединяющие локальное и удаленное хранение, что делает систему универсальной и эффективной.
Важной частью является разбор ключевых интеллектуальных возможностей, таких как определение активности, идентификация элементов и другие AI-технологии .
Pjdicp · February 2, 2025 at 3:31 pm
zithromax over the counter – order generic nebivolol 5mg bystolic online buy
Jfxwmz · February 3, 2025 at 8:18 pm
prednisolone 40mg us – buy azithromycin 500mg without prescription buy progesterone 100mg generic